Italy have re-appointed Marcello Lippi, the man who led them to World Cup success in 2006, as their new coach.
Lippi replaces Roberto Donadoni, whose contract was not renewed following Italy’s exit from Euro 2008 at the quarter-final stage.
Lippi, 60, will be unveiled in Rome on Tuesday, the Italian Football Federation (FIGC) confirmed on its website.
He has not coached since leading Italy to their World Cup triumph against France in Berlin.
Donadoni, 44, signed a new contract extension prior to Euro 2008 but one of the conditions of the deal was for the world champions to reach the last four.
The FIGC activated a get out clause after they lost to Spain on a penalty shootout.
The FIGC said his tenure had “run to its natural expiry date”.
“President Giancarlo Abete on Wednesday met with national coach Roberto Donadoni in the FIGC headquarters,” read a brief statement on the FIGC website.
“In the course of the meeting, as already announced, they reviewed the work carried out in the last two years and how the European Championships had panned out.
“While confirming to Donadoni sincere personal admiration and appreciation for the reliability and skilled professional work which marked his time at the helm of the national side, president Abete also communicated to the coach the FIGC’s decision not to renew the contract.”
The former Lecco and Livorno boss said he was pleased with his tenure in charge of the national side.
“I’m sorry that a penalty kick has decided this situation,” he told ANSA news agency.
“Over these last two years, my Italy also did something positive, and one last game can’t erase that.”
He added: “I don’t have the foggiest idea what I will do in the future. I’ve got to digest this and then start anew.”